Less than 30 percent of all Americans own a life insurance policy. Anyone with dependents should consider the importance of purchasing a life insurance policy that would replace the annual income if the unthinkable happened. These life characteristics should be considered:
- Home ownership
- Business ownership
- Family age
- College-bound children
- Age of the insured
Term life insurance is the most affordable type since the policy will not build cash value from a portion of the premium, which is the case with whole life insurance. Financial advisors recommend annuity policies with a death benefit for people with sufficient funds to invest. Each type of life insurance has advantages that should be discussed with your insurance agent. Additional policies can be added to the portfolio, as family needs change.
Acquiring life insurance should happen early in life to establish insurability while your physical health is good. Pre-existing medical conditions cause rates to rise. Insurers can refuse to underwrite life insurance policies for people in high-risk categories, such as diabetes, heart disease and cancer. Once these conditions develop, life insurance will be difficult for you to find and afford.
For all your life insurance needs in California, contact Thomas Ager at Agers Insurance Services, today!